Morning Gold/Silver Market Report While gold and the rest of the precious metals markets were able to reject the initial Thursday morning selling wave, residual strength in the Dollar again this morning has pushed the precious metals markets back on their heels to start the Friday US trade. However, we suspect some bargain-hunting buying was seen around the Thursday morning lows and with the low on Thursday pushing December Gold prices down to their lowest level since the first trading days of 2014 and gold prices to their recent low, down from the July high by almost $134 an ounce, the gold market should be getting closer to a liquidated standing. Reports of legal problems for the President of Chinas largest gold mining company overnight might cast some doubt on Chinese gold supply, especially since the anti-corruption police are reportedly handling the investigation. We still cant rule out at least a temporary test of the even number $1,200 level, but it is possible that classic physical commodity market fundamentals might be set to improve over the coming sessions, as geopolitical uncertainty is on the decline today and equities have returned to new high ground. While Chinese, Euro zone and UK data points have been discouraging lately, a number of central banks have taken action and are suggesting they will continue to act to support growth and therefore the bear camp in gold and silver might see the risk of being short rise ahead. While the festival season in India remains a little more than a month off, the sharp decline in the flat price gold (to almost the lowest levels in 10 months) has started to produce estimates of sharply improved Indian festival demand directly ahead. While the market discounted reports of Chinese central bank buying earlier this week, one would think Chinese central bankers might be doing some bargain-hunting reserve buying on the current slide in prices. Like gold, silver also saw a sharp range-down extension, but then rejected the majority of that washout. Unfortunately gold and silver derivative holdings yesterday afternoon declined by 10,976 and 96,166 ounces respectively and that doesnt signal bargain hunting buying interest.
Posted on: Fri, 19 Sep 2014 12:16:09 +0000
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